FRANKFURT (MNI) – The strategies that have been implemented to
protect the Eurozone are working, European Financial Stability Facility
CEO Klaus Regling said on Friday.
He added that the real economy is doing “surprisingly well.”
Speaking at the ECB Watchers conference here, Regling stressed that
“adjustments are happening.” and “fiscal balances are being reduced.”
“When you look at the stability programs that have been submitted
to the Commission and have been analysed, we see that the euro area
deficit will decline from 6% of GDP last year to 1.3% of GDP in 2014,”
Regling said. “The debt ratio will also begin to decline.”
Regling also noted that the fiscal exit strategies in Europe were
“well defined and on track, unlike in the U.S. and Japan.”
However, Regling warned that “we can’t always rely on what is
happening at the European level.”
“Ultimately, the improvements have to come at the national level,
as well,” he added.
Eurozone growth forecasts “are good,” Regling continued. “They are
now projecting growth for the euro area over the next two years.”
Regling gave the breakdown of the loans given to Portugal, adding
that a bond auction would be carried out next week by the EFSF to raise
funds for the country.
— Frankfurt bureau: +49 69 720 142; email: frankfurt@marketnews.com —
[TOPICS: M$G$$$,M$X$$$,MT$$$$,MFX$$$,MGX$$$,M$$CR$]
